What happened to Research In Motion and where are they going?

I want to start this off by saying I have nothing but love for RIM the company. Probably my favorite tech corporation in the world, they’ve created an incredibly unique product that practically replaces the need for drugs for most people. What’s even more fascinating, however, is how RIM (to the pleasant surprise of a lot of us early users) has managed to take a corporate-focused product and service and blow down doors in the consumer world. From the BlackBerry 7100, the first consumer-oriented device, to the eye-catching BlackBerry Tour (it’s business through and through, yet it will be an incredibly popular consumer phone on Verizon and Sprint), it’s clear that RIM has done everything right to this day.

So, what’s the problem you’re asking? They have probably the best back-end infrastructure for mobile communication on the planet, awesome phones that can go head-to-head with high-end smartphones, consumer marketing, a huge consumer fanbase, and practically every businessman (or woman) has one on their hip. One word is where RIM fails so miserably it isn’t even imaginable: software.

You have to look at the big picture here… for what RIM is working with (an incredibly miserable Java OS with so much security and encryption and smoke-blowing APIs) they’ve hit the jackpot. Their OS architecture is fantastic, their use of security is what makes them so trustworthy. But, as each handset release comes closer and closer, people start to see the bigger picture. And that’s the fact that RIM’s OS is more than antiquated, it’s borderline laughable. But it works, you’re thinking, so what’s wrong? I’ve been saying this for years, but it wasn’t designed to do anything the BlackBerry does now. Imagine scotch taping car parts to a 200hp engine and see how far that gets you. Obviously, it’s just a viciously rough metaphor, but we believe a correct one.

There’s so many limitations to RIM’s OS, and even RIM’s data network that it offsets all the wonderful things they’ve managed to accomplish. Remember when people were so excited over leaked shots of OS 4.6 and I said somewhere it was just a theme? Well, was I wrong? Oh, look! OS 5.0! What changed? 99% nothing. Some functionality is added here and there, but the mobile phone landscape has changed so drastically in the last two years, that RIM, admittedly known to planning “three years out” looks to be unable to see the proper direction to head.

You can throw $1,000,000,000 at developers but you won’t get any if your OS, tools, and documentation are so bad, and that’s really in the end a lot of what I’m getting at. I was laying in bed at around 3AM early one morning recently, looking through the iPhone App Store and I came across EA’s Tiger Woods Golf. $6.99, why not? Wait, it’s 150MB? Wow, it must be good. I clicked purchase and literally 4 minutes later, Tiger Woods was installed and up on my screen. Granted I was on a high-speed Wi-Fi connection, but it made me realize more than ever that RIM has the most uphill battle of their lifetimes. When a BlackBerry application over 500k is considered “large”, something’s wrong. When TweetGenius is one of the first BlackBerry applications to do fun, unique things like transparent overlays, consistent shortcuts, and a straight forward UI, something is wrong.

The reason why this is so frustrating to me and I’m guessing many is because RIM literally almost has it all. They’ve got it! They are 90% there but that last 10% has become the most important. If you take Apple for example, and see their shortcomings, and then what they’ve done to fix them, it’s remarkable. It’s a completely different DNA than RIM’s but it’s working. In two years Apple has practically matched Research In Motion in almost every consumer area while having the most advanced mobile operating system with the most advanced mobile SDK on the planet. If Apple can do this in just two years and RIM has stood still, no one thinks that’s a problem?

The reason RIM works is because it’s the entire package, if you will. Hardware, software, infrastructure, corporate integration, security, etc. People want simplicity, ease of use, but more than ever they want more than they need. Stupider people are smarter and expect more, smarter people are stupider and expect more. RIM delivers the same tired package in new hardware and people are starting to catch on. App World? Seriously? From every single developer I’ve spoke to, it’s a non-starter. It basically doesn’t exist to them in terms of a sales channel — it’s practically like 1% if that.

What consumers don’t do is look forward. They look at what’s put in front of them. It’s the exact opposite for the manufacturer and thus why it’s so difficult. Look back two or three years and the Bold and Storm might seem incredibly innovative, consumer-focused, and sure to be hot sellers. And they were and are, but look ahead three years and tell me point blank you have confidence that RIM knows how to steer this ship. I don’t, and that’s being incredibly honest. It’s not me being negative, it’s objectively looking at the landscape and evaluating things. I want RIM to succeed, I want RIM to make kick ass products. I’m just frustrated that RIM is going through hardware like it’s nobody’s business yet fails to deliver on the things that everyone wants. Screw business people, screw consumers, everyone wants a WebKit-based browser. It’s inexcusable RIM doesn’t get it. It’s inexcusable that people put up with a 2003 operating system with so many limitations and restrictions it would make Ahmadinejad jealous. I don’t think RIM is going anywhere, they as a company are incredibly successful, but once they start to lose the consumer market which they worked so hard to get, it’s a downward shift.

Here’s a list of RIM’s models followed by Apple’s in the last 3 years:

There’s a good and bad part with knowing things in advance. For instance, people might hold off on purchasing a new BlackBerry if they know a newer and better one is being released in a couple months, and this hurts a company’s current product cycle. On the other hand, if someone on Verizon sees a Tour being released two months from now, they might rethink jumping ship or switching to a different device on Verizon. And the cycle continues. Looking at RIM’s upcoming products for the next 6-12 months is simply a rehash of current limitations and shortcoming in smaller and sexier packages. The BlackBerry 9020? It’s a Bold in a smaller, sexier package. Nothing else is different. The BlackBerry Storm 2? It’s the same device with maybe improved screen tech. The BlackBerry Magnum? As hot as a hybrid touch screen/QWERTY device would be, it’s still a BlackBerry that can’t pull up a webpage to save its life or play a real game or have any sort of desktop-class application running.

These things won’t change, the core OS hasn’t changed, and RIM has had no reason to change it. Why mess with success, right? Well, if you happen to be Research In Motion, you might have to start changing things up or newer and better operating systems like the iPhone, webOS, and Android are going to eat their lunch and their applications, too.

I’m fortunate enough to be able to have every phone I want on every carrier and that gives a person an incredible amount of clarity when picking the superior products. I use an iPhone 3GS and a BlackBerry Bold everyday, both on AT&T. But to tell you the truth, in the past when people ask me what device would I choose if I had to only pick one, it would hurt my brain. There was just no way to choose. But unfortunately or fortunately, that decision has become clearer and clearer. I don’t think I’ll ever give up my BlackBerry, I’m pretty sure you’ll always find one on my hip in an OEM RIM leather holster, (yes, holsters are cool as shit) but when me of all people starts truly questioning how a company as successful and brilliant as RIM is going to keep up with the next 2-3 years, you’ve got a big, big issue.

I’ll close by saying that the market is still wide open and this doesn’t mean RIM is or ever will go anywhere. It’s just something to keep an eye on and see how the best to ever do it will react to competitors’ advances, innovations, and of course, their software.

So sue me for being an Ugly American! Fortune ranks RIM as the fast growing company in the world, a place which is frequently defined as including both the US and Canada. So while RIM continues to be indefensibly guilty of not being Apple, they might also fall into the category of “They must be doing something right”. The original post, despite its overwrought tone, makes a point well taken, that past success and customer loyalty can’t be taken for granted and won’t save RIM from the dustbin if they don’t continue to perform and to develop better products. The market, viewed on a broad scale, suggests that RIM is very attuned and responsive. Yet that same market, if fractured and broken down consumer-by-consumer, post-by-post, would suggest a mass of angry, caterwauling malcontents crowding along the rails waiting to jump ship.

Tom

Be careful about what you have been reading about RIM. They just let go of a bunch of key people yesterday, and are doing it again today in Canada. It was described to me like the Holocast. They sent a bunch of their “management” people to Canada – in which they thought they were going to a RIM “U2” sponsored concert and then FIRED them all in a room – or “let them go”. Another round is going up today. Just FYI …..

Mark

I completely agree… one thing to add from a technical perspective is that technology behind the OS.

Java is an overweight and bloated technology. It’s great in certain application mostly on consumer PC, but not on an embedded device (ie smart phone). RIM tech stack looks like the following:

Hardware
JVM
OS
Applications

Look at apple who uses Objective-C, which is a very light weight, and efficient programming language and they get rid of the JVM overhead. They pretty much took the OSX and took out all the crap you don’t need for a phone. Their Tech stack looks like

Hardware
OS
Application

daknarr

As a business device, RIM has NO equal. Messaging and email are RIM’s claim, and Apple has yet to address that issue. The iPhone, while a wonderful device, simply would NOT fill my business needs…I’ve tried. I’ve heard people call the iPhone a toy. While I would not be so degrading to the device as that, it is certainly geared more towards people with…well more free time on their hands. I really don’t see why this all has to be an iPhone vs. Blackberry at all, but I guess in today’s society the “mine’s better than yours” argument needs fuel from somewhere.

rkf2

Why do you think it won’t meet your ‘business’ needs? iPhone supports Exchange, has FULL IMAP- not the crap RIM offers, has remote wipe, and even comes with custom apps for businesses. Moreover, it supports enterprise servers! It’s more efficient, syncs better with both PCs and Macs and is so much better! What I just CANNOT understand is why RIM cannot allow multiple fields under one contact- i.e. why should there be a limitation to the number of ‘mobile’ fields one contact can have?! The OS is so backward and so rigid and the people who created the OS were so incredibly lazy that they did not allow provisions for custom fields! I’ve studied computer science for three years and I can make a program that can use custom fields but professional programmers at RIM still can’t do that! It’s unreal! Get your shit together RIM- people are buying your phones for BBM and some for the keyboard. Rather than lose all your customers to a very possible iPhone with BBM and keyboard, it’s going to be extremely hard to get them back. You’d rather do a major software overhaul while you already have them! It’s common sense, and basic marketing. So will the Chairperson of RIM PLEASE FIRE the CEO already! It’s about time they step up the game and get real!

TF2

Agree on browser and buggy apps [BTW, apps != OS != themes lolzzz]. Don’t agree on RIM getting ‘taken over’ by others especially in the corporate world. You have to remember, RIM is still new to the consumer world. RIM makes software that caters to both consumers and business users…it’s too bad most people don’t understand this. Maybe the real issue is here … it’s hard or maybe impossible to capture both markets.

I’m not going to comment on the iPhone fanboy nonsense here… the net is full of it, especially anywhere RIM is mentioned :)

@Mark

That’s the trade-off you make when using Java. If you write software for iPhone you must port it to Java… whereas if you write it for BB [assuming you were careful not to use their BB specific APIs] you can use it on any other device that supports J2ME. I wonder how it’s like to maintain 20 devices using native code? can Apple make a device that fits all? price? features? if you’re thinking iPhone, you have the wrong answer :)

mightymatt

“Well, if you happen to be Research In Motion, you might have to start changing things up or newer and better operating systems like the iPhone, webOS, and Android are going to eat their lunch and their applications, too.”

It seems funny that you overlook the fact that Android has the exact same application memory limitation that Blackberry does. In fact, Android has many of the same design flaws that BB OS does, albeit with a slightly slicker interface. Also, RIM purchased a webkit based browser recently, and claims that they will have flash, silverlight and a webkit browser shipping next summer (2010). I wouldn’t coun’t rim out just yet…

BUCKEYEsktrboi

What about being able to run apps from a media card???? when are you going to get started on that RIM?????

aDk

Anyone knows RIM’s plans for future upcoming OS? Seriously the more I compare apps of Blackberry to iPhone, the more I want to make the switch. The only thing keeping me on a BB is the physical keyboard and BBM (huge user base). I want to browse gorgeously like iPhone browser, with the much drooled-over large multi-touch screen. BB’s small screen is… Sad in comparison and the browser sometimes drive me crazy. I hope to be able to see a totally new OS with the current fantastic hardware build, especially the keypads.

killbot

aDK hit it on the head.

Blackberry for me is the keypad and BBM. GF, family, coworked are all on BBM, and that’s the only thing keeping me from switching.

meanwhile, their lines are all messed up.
They have more than 5 distinct devices on the same form factor (Bold9700, Tour, Bold9000, Curve8900, Curve 8520…)
One touchscreen bar (Storm 1/2)
One compact (Pearl)
One flip (Pearl Flip)

With all the extra entailed in duplicating the Curve/Tour/Bold, they might have made something NEW.

Palm Pre has a mid-size touchscreen, with a slideout BB-esque keypad. I thought of it before I ever heard of the Pre, and I know BB would have done it better.

rocmon

from an inside RIM vantage point… great article, and stay tuned ;)

CurveUser

@rocmon:

How long do we need to stay tuned? My contract is up or renewal, and I am desperate for (1) true 2-way Gmail sync, (2) a better web browser/HTML email, and (3) a processor/OS combo that doesn’t lag.

Please give me a clue before I run out of patience & switch to Android, iPhone or WebOS.

Also when/how will RIM change from CATCHUP mode to LEADERSHIP & INNOVATION?

You’ve been playing catchup for 2 years now… Why? Is there something wrong with the company’s DNA?

CurveUser

@rocmon

You can’t just aim to match Apple — you need to aim far ahead of them.

Microsoft has been aiming to match Apple’s desktop/laptop finesse in recent year (and are finally succeeding). And they’re trying to catch up with Google on web services. But they aren’t creating anything new. That’s why they’re continuing to lose the hearts & minds of consumers.

rocmon… please please give us a reason to think RIM isn’t the next Microsoft.

killbot

be the best, or retire.

BB is making it clear that they were never prepared for the consumer uptake of business phones.

In form factor, they are tops.
In business, I’m pretty sure they’re still #1.
And they have the BBM user-base.

But they are way behind in advancing useability and innovation. I SHOULD be able to check a contact, and see emails, BBM, SMS, and calls (Palm). As soon as I saw this, it was elementary, and everyone should be scrambling to imitate.
That’s only one example… but it just shows how slow they are.

For now, the perfect keypad, and BBM will keep me loyal. But if the Palm Pre had BBM, and the keypad was usable, I’d be GONE.

robert

@killbot: “I SHOULD be able to check a contact, and see emails, BBM, SMS, and calls (Palm)”

edit: where I said form-factor, I meant ergonomics. The ease of use of the hardware.

When it comes to form factor, they could really stand to have some new blood. They have massive duplication in their line as is.

Omegaman

I read with great interest all the comments about RIM, Apple, Android and the rest. I am seriously considering a Blackberry Bold 9700, but have some serious hesitation as I read more reviews.

I have owned most high tech phones available, usually buying them when they first come out, like I am considering doing with the Blackberry Bold 9700. I have two IPhones, a PPC6700, a AT&T Tilt, and a number of other phones. But, no Blackberry. I have never owned a Blackberry myself, but did buy my wife a 7100i, which quite frankly was a complete peace of junk.

So, having never used a Blackberry for any amount of time (other than trying to get the wifes working every other day), and after reading this and other articles, I am not sure I want one.

Somebody tell me just what is so great about a Blackberry, and specifically if possible the Bold 9700 as compared to say the IPhone 3GS? I use two phones and will not be replacing the IPhone 3GS.

Note: I am not loyal to any one company, not seeing any real benefit to me to be so. The IPhone is the first product I have ever bought from Apple, so am not any loyal Apple person. I purchase, after many weeks of reviewing and researching, what I think best fits my needs and desires. I really want a good (or preferably many) good reason/reasons to purchase the Blackberry Bold 9700 in the next couple of days. I would use one phone mostly for work, and the other mostly for personal use.

Thanks

Wang890

Even big big boss managers in my company all use iPhone 4 now….. What does that tell you? Civil Engineering company so very tech savvy. Rim’s done.
Most people in the army uses iPhone.